> ## Documentation Index
> Fetch the complete documentation index at: https://pnpprotocol.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Fee Structure

> PNP fee breakdown: creators earn 30% of volume fees, 20% goes to DAO settlement, and the rest funds protocol growth and trading incentives.

## Fee Structure

PNP charges a **1% fee** on all trading volume across every market. This fee is split across the ecosystem to reward creators, fund settlement, and incentivize growth.

### Fee Distribution

| Recipient | Share | Purpose |
| - | - | - |
| **Market Creators** | 30% | Direct reward for creating and curating valuable markets |
| **PNP DAO** | 20% | Compensates DAO members for settlement responsibility when the oracle can't resolve a market |
| **Protocol & Trading Incentives** | 50% | Funds protocol development, infrastructure, and trading incentive programs |

### How It Works

* **1% fee** is deducted on every buy and sell across all PNP markets
* **Creators earn 30%** of fees from their markets — the more volume your market generates, the more you earn
* **20% goes to the PNP DAO** — the DAO takes on the responsibility of settling markets that fall outside the oracle's scope. This allocation compensates members for that duty.
* **The remaining 50%** funds protocol operations and trading incentives that drive platform growth

### Why This Structure

* **Creators are rewarded** for building markets that attract volume — aligning incentives between creators and the platform
* **Settlement is funded** — the DAO has a sustainable revenue stream to maintain high-quality, reliable settlement as the backstop to the LLM oracle
* **Growth is sustainable** — protocol and incentive funding ensures long-term development and user acquisition without relying on external fundraising


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